Challenging climate for iwi investments


Challenging climate for iwi investments

In our latest Iwi Investment Report, we review the 2023 financial year for ten of New Zealand’s iwi: Ngāi Tahu, Ngāpuhi, Ngāti Awa, Ngāti Pāhauwera, Ngati Porou, Ngāti Whātua Ōrākei, Raukawa, Tūhoe, Waikato-Tainui, and Ngāti Toa, the combined assets of which we estimate at around $8.1 billion.

2023 was a challenging year for the iwi covered in this report; all except Ngati Porou reported decreased returns on assets from the year prior and half of the iwi reported financial losses. The global financial markets declined in 2022, with diminishing revaluation gains for most iwi that soon turned into losses by 2023.

Half the iwi reported returns lower than our 2023 benchmark of 0.01%, with Ngāti Pāhauwera being the lowest at -16.2%. On the other hand, Ngati Porou, Waikato-Tainui and Ngāti Awa exceeded our benchmark and Raukawa while Ngāpuhi reported the highest returns of 5% and 4.9% respectively.

These negative returns were largely the result of revaluation losses in property due to a poor economic environment with high interest rates. Iwi with assets in forestry and other primary industries, particularly Ngāti Pāhauwera, Ngāpuhi and Ngāti Porou were hit by Cyclone Gabrielle. Ngāi Tahu, Tūhoe and Waikato-Tainui in 2023 reported revaluation losses or chose to decrease their investments in primary industries.

Featured in the TDB Digest March 2024

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2024-03-12T08:04:02+00:00February 11th, 2024|Investment Strategy, Maori Economy|Comments Off on Challenging climate for iwi investments